Impact of pricing and outsourcing models on Indian information technology service outsourcing

2015 ◽  
Vol 22 (4) ◽  
pp. 610-623 ◽  
Author(s):  
Daisy Mathur Jain ◽  
Reema Khurana
Keyword(s):  
Information Technology ◽  
Statistical Tests ◽  
Pricing Model ◽  
Pricing Models ◽  
It Industry ◽  
Service Outsourcing ◽  
Content Type ◽  
It Service ◽  
The Impact ◽  
Practical Implications

Purpose – The information technology (IT) industry has grown owing to the increase in IT outsourcing prompted by the need for cost reductions in organizations. The IT industry contracts are based on pricing models, which establish the terms and conditions of payment to be made to vendors by clients. The pricing models followed in the industry are mainly Fixed Time Fixed Price (FTFP) and Time and Material (TnM) and the remaining are mostly variations of these. Using the information collected from vendors, the purpose of this paper is to draw a comparison between these pricing models to see which one is more acceptable to vendors along with researching on the reasons behind that. The outsourcing engagement is also based on a set of processes to be used during the contract time and that is known as the Outsourcing Model (OM) being used. This research also derives how pricing models, OMs and Client Vendor Relationship (CVR) being developed are related. Design/methodology/approach – Hypothesis have been formulated on the basis of the literature survey conducted by the authors, subsequently questionnaire was formulated and data were collected from – a total of 500 people were targeted, out of which 70 people responded. Out of these 70 only 50 were usable responses. The respondents were at the manager and above level in different organizations classified on the basis of number of employees. Statistical tests were conducted on these data to check the reliability, prove the hypothesis and establish the mediation and moderation relationships between the pricing model, OM and CVR. Findings – The following paper has established through statistical analysis which pricing model is more befitting to the IT service outsourcing industry and has also demonstrated the moderation and mediation relationship between pricing model, OM and CVR variables. Research limitations/implications – The major reserach limitation is that it is for only IT vendors in Indian geography. The research can be extended to different businesses and geographies. Practical implications – The paper has practical implications for the IT service outsourcing industry in India and for their clients to understand the comparison between the pricing models and to study the impact of pricing and OMs on the CVRs. Originality/value – The research presented is original as no similar work has been found to be published in the journals so far specifically in the Indian context.

An empirical comparison of pricing models in information technology service outsourcing in Indian context

2015 ◽  
Vol 22 (4) ◽  
pp. 697-710 ◽  
Author(s):  
Daisy Mathur Jain ◽  
Reema Khurana
Keyword(s):  
Information Technology ◽  
Theory And Practice ◽  
It Outsourcing ◽  
Empirical Comparison ◽  
Pricing Models ◽  
Service Outsourcing ◽  
Content Type ◽  
It Service ◽  
Fixed Price ◽  
Practical Implications

Purpose – The information technology (IT) outsourcing has been inexorably growing in spite of its downsides. The main reasons are financial gains and cost reductions, as well as it allows companies to focus on their core selling areas. Within IT outsourcing, offshoring has become a big success because it greatly reduces costs. Countries like India, China and Philippines are attracting a lot of IT outsourcing work. In order to save costs, companies have to work out the best pricing models with the vendors so enable profitability at both ends. The main pricing models prevalent in the industry are Time and Material (TnM) and Fixed Time Fixed Price (FTFP) alternately also referred as Fixed Price. There are various other pricing models now, which are mainly variations of these. The purpose of this paper is to show an empirical comparison between these models from the vendor’s perspective to see which of them has greater acceptability. Design/methodology/approach – The paper is an empirical paper in which literature survey has been done to study various pricing models in the IT service outsourcing industry, on the basis of same, two most used models have been identified, namely, FTFP and TnM, hypothesis were formulated, Likert scale questionnaire was formed. Subsequently data were collected and Wilcoxon signed-rank test was carried out to compare the variables defining the FTFP and TnM models of pricing. In total, 68 firms were targeted and 120 responses were received. The two models were studied against parameters like usage, profitability, risk, deliveries meeting project schedule, good quality code, the pricing model used by respondents’ majority of times and whether either of them lead to increasing costs. Findings – This study has found that TnM is less risky for vendors, more profitable and vendors are able to manage better quality delivery compared to FTFP. Also it has been statistically proven that the pricing models TnM and FTFP do not impact the usage and schedules in any way. These are important findings as there have been no earlier research papers which have compared the pricing models with reference to Indian IT service outsourcing industry. Research limitations/implications – The two major pricing models TnM and FTFP are studied in the paper below. Data were gathered from 68 companies. As per results, TnM is more profitable, less risky, does not lead to increasing cost and produces good quality code as compared to FTFP also it has been statistically proven that the pricing models TnM and FTFP do not impact the usage and schedules in any way. The implications bridge a gap between theory and practice, as theoretically many pricing models exist, however, what are practical applications and justification vis-à-vis different aspects has not been approached statistically so far in the given context. Further research can be done on other variations of pricing models and to establish which one should be the preferred model and in which circumstances. Practical implications – There are major practical implications of the paper as it fills the gap between the theoretical discussions of pricing and identifies and statistically proves importance of various aspects of pricing in practice. Originality/value – The paper is original and adds value in terms of advising the IT service outsourcing companies as to which pricing models to use.

A framework to study vendors’ contribution in a client vendor relationship in information technology service outsourcing in India

2016 ◽  
Vol 23 (2) ◽  
pp. 338-358 ◽  
Author(s):  
Daisy Mathur Jain ◽  
Reema Khurana
Keyword(s):  
Information Technology ◽  
Research Work ◽  
Future Research ◽  
Time Zone ◽  
It Industry ◽  
Service Outsourcing ◽  
Content Type ◽  
Technology Service ◽  
The Stability ◽  
The Relationship

Purpose – The information technology (IT) industry has been continuously expanding. This has resulted in promoting outsourcing of work by clients to vendors. Most of the published research has focussed on when clients should start outsourcing, what to outsource, criteria for vendor selection, etc., however the vendor side of the relationship has been mostly ignored. The purpose of this paper is to delve deep into the vendors’ side and what aspects a vendor needs to consider in order to maintain a good relationship with the clients. Design/methodology/approach – The research design of the paper is to use literature survey to define the components of the client vendor relationship (CVR), identify the parameters impacting the relationship, establish correlation between the independent variables and the dependent variable; subsequently to propose a framework for the CVR. Findings – The findings have been that – communication, technical value addition, knowledge sharing and client vendor adaptability are vital to any outsourcing engagement and if the vendor is able to get good knowledge transfer of the application at hand and the business domain, it can perform better. Vendors, which proactively resolve issues, ensure stable deliveries before time and identify improvements in the software outside the work assigned maintain better relationship. Further a vendor must be adaptable to clients, cultural, time zone differences, should provide a good project manager and be ready to change tools, resources as per client needs. As long as the vendor is able to ensure the above, the stability of the client country and need for information security is not as important to vendors. Research limitations/implications – The study has limitations as it focusses on the vendors’ side and is inclined toward Indian vendors’ perspectives. Future research can include client as well and can be conducted for a different geography. Originality/value – The research work is original and adds value to the IT service outsourcing industry by identifying the parameters which need to be monitored for a sustainable CVR.

Information technology sector in India and gender inclusivity

2015 ◽  
Vol 30 (2) ◽  
pp. 94-108 ◽  
Author(s):  
Sangita Dutta Gupta ◽  
Ajitava Raychaudhuri ◽  
Sushil Kr. Haldar
Keyword(s):  
Information Technology ◽  
National Capital Region ◽  
It Industry ◽  
Content Type ◽  
Policy Initiatives ◽  
Technology Sector ◽  
National Capital ◽  
Female Employees ◽  
And Gender ◽  
The Impact

Purpose – This paper aims to address the issue of gender inclusivity in the information technology (IT) sector of India. The main objective of the paper is to find out the factors influencing female participation in the IT industry. It proposes some policy initiatives to support involvement of women in adequate proportion in the workforce. Design/methodology/approach – The study uses a unique set of data from 63 IT companies from three big cities of Delhi-National Capital Region (NCR), Bengaluru and Kolkata. An ordered logit model is applied to find out the determinants of female absorption in the IT industry. ANOVA is used to study the variations between and within the IT industry of female labor force participation. Findings – Result reveals that the percentage and mobility of female employees in an organization does not depend on the turnover or the total number of skilled employees in the organization. It depends on the location. Research limitations/implications – The main limitation of the paper is that many IT companies do not want to reveal data about the percentage of female employees. If more companies could have been included, more accurate results could have been found. Practical implications – The study discusses the aspect of gender inclusivity in the IT sector as well as the impact of higher skill on gender. The paper proposes some policy initiatives which can increase the number of female employees in the IT sector. Originality/value – The study fulfills the need to know about the gender inclusivity aspect of the IT sector in India.

Introducing the marketplace or not? Risk analysis of channel strategy for online retailers

2019 ◽  
Vol 120 (2) ◽  
pp. 366-387
Author(s):  
Yuan Shi ◽  
Luying Zhou ◽  
Ting Qu ◽  
Qian Qi
Keyword(s):  
Risk Analysis ◽  
Design Methodology ◽  
Operating Costs ◽  
Social Implications ◽  
Pricing Model ◽  
Content Type ◽  
Channel Strategy ◽  
Online Retailers ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this paper is to help online retailers who have an existing reselling channel to figure out the risk of introducing an additional marketplace channel and identify the introduction threshold with an overall consideration to the fulfilment cost and services. Design/methodology/approach In order to evaluate the risk of the marketplace channel strategy, this paper develops a Retailer–Stackelberg pricing model. Products are divided into two categories according to different fulfilment cost–value ratio to get a more targeted strategy. Findings The results show that the strategy of introducing the marketplace is not always satisfying. Retailers prefer this strategy when they are the prevailing parties in service output. The overall trend is that retailers have to encourage their marketplace partners to improve services for the product with a big fulfilment cost–value ratio. Otherwise, retailers should block the marketplace from entering. Research limitations/implications For an intuitive conclusion, this paper assumes that the operating costs (except fulfilment cost) are equal in two channels. This suggests a need to further investigate the impact of other costs. Meanwhile, it would be interesting to examine the competition among suppliers and retailers. Practical implications This research provides the suggestions for online retailers who want to introduce and well manage the marketplace channel. Social implications This research also helps both academia and industry become more intelligent about the significant influences of category management on channel strategy. Originality/value Most prior research is unaware of the risk of introducing a new channel, which also rarely considers how to manage it. This research points out that the effectiveness of this channel strategy differs in different categories. Moreover, retailers can benefit from managing the marketplace’s service output.

scholarly journals Information technology and marketing: an important partnership for decades

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jan Philipp Graesch ◽  
Susanne Hensel-Börner ◽  
Jörg Henseler
Keyword(s):  
Information Technology ◽  
Digital Transformation ◽  
Transformation Model ◽  
Digital Marketing ◽  
Content Type ◽  
The Past ◽  
Customer Interaction ◽  
Enabling Technologies ◽  
The Impact ◽  
Practical Implications

PurposeThe enabling technologies that emerged from information technology (IT) have had a considerable influence upon the development of marketing tools, and marketing has become digitalized by adopting these technologies over time. The purpose of this paper is to demonstrate the impacts of these enabling technologies on marketing tools in the past and present and to demonstrate their potential future. Furthermore, it provides guidance about the digital transformation occurring in marketing and the need to align of marketing and IT.Design/methodology/approachThis study demonstrates the impact of enabling technologies on the subsequent marketing tools developed through a content analysis of information systems and marketing conference proceedings. It offers a fresh look at marketing's digital transformation over the last 40 years. Moreover, it initially applies the findings to a general digital transformation model from another field to verify its presence in marketing.FindingsThis paper identifies four eras within the digital marketing evolution and reveals insights into a potential fifth era. This chronological structure verifies the impact of IT on marketing tools and accordingly the digital transformation within marketing. IT has made digital marketing tools possible in all four digital transformation levers: automation, customer interaction, connectivity and data.Practical implicationsThe sequencing of enabling technologies and subsequent marketing tools demonstrates the need to align marketing and IT to design new marketing tools that can be applied to customer interactions and be used to foster marketing control.Originality/valueThis study is the first to apply the digital transformation levers, namely, automation, customer interaction, connectivity and data, to the marketing discipline and contribute new insights by demonstrating the chronological development of digital transformation in marketing.

scholarly journals A Study to Analyze the Impact of Knowledge Management (KM) practices in IT Service Delivery Industry in India

2021 ◽  
Vol 12 (4) ◽  
pp. 182-193
Author(s):  
Barakath Ali Shaik Mohamed, Et. al.
Keyword(s):  
Information Technology ◽  
Knowledge Management ◽  
Service Delivery ◽  
Management Practices ◽  
Paper Analysis ◽  
Vital Role ◽  
It Services ◽  
It Industry ◽  
It Service ◽  
The Impact

Information Technology (IT) Industry in India is growing fast. Organizations across the world are outsourcing the IT services to take advantage of cost and time differences. India plays vital role in supporting the outsourcing services by taking advantage of the language skills and skilled workforce. Knowledge Management (KM) is critical for the continuity of the services and success of the organisations in different domains. This paper analysis the impact of Knowledge Management in Information Technology (IT) Service Delivery Industry in India. The study reveals Knowledge Management improves the performance of the Service Delivery organization.  Methodical implementation and continuous improvement of Knowledge Management practices would further accelerate and improve the customer experience.

Perceived workplace gender-bias and psychological impact

2019 ◽  
Vol 43 (3/4) ◽  
pp. 339-353 ◽  
Author(s):  
Siham Lekchiri ◽  
Cindy Crowder ◽  
Anna Schnerre ◽  
Barbara A.W. Eversole
Keyword(s):  
Gender Bias ◽  
Critical Incident ◽  
Psychological Impact ◽  
Working Women ◽  
Content Type ◽  
Treatment Bias ◽  
Male Dominated ◽  
The Impact ◽  
Organizational Mechanisms ◽  
Practical Implications

Purpose The purpose of this paper is to explore the experiences of working women in a male-dominated country (Morocco) and unveil the unique challenges and everyday gender-bias they face, the psychological impact of the perceived gender-bias and, finally, identify a variety of coping strategies or combatting mechanisms affecting their motivation and retention in the workplace. Design/methodology/approach Empirical evidence was obtained using a qualitative research method. The Critical Incident Technique (CIT) was used to collect incidents recalled by women in the select institution reflecting their perceptions of their managers’ ineffective behaviors towards them and the impact of these behaviors. The critical incidents were inductively coded, and behavioral statements were derived from the coded data. Findings The qualitative data analysis led them to structure the data according to two theme clusters: The perceived gender-bias behaviors (Covert and evident personal and organizational behaviors) and Psychological impacts resulting from the perceived bias. These behavioral practices included abusive behaviors, unfair treatment, bias and lack of recognition. The psychological impact elements involved decreased productivity, depression, anxiety and low self-esteem. Practical implications Understanding these experiences can facilitate the identification of strategies geared towards the retention of women in the workforce, and Moroccan organizations can develop and implement strategies and policies that are geared towards eliminating gender-bias in the workplace and to retaining and motivating women who remain ambitious to work in male-dominated environments and cultures. Originality/value This paper provides evidence that sufficient organizational mechanisms to support women in male-dominated environments are still unavailable, leaving them to find the proper coping mechanisms to persevere and resist.

Embedding employability within higher education for the profession of policing

2019 ◽  
Vol 9 (3) ◽  
pp. 319-328
Author(s):  
Ian Pepper ◽  
Ruth McGrath
Keyword(s):  
Higher Education ◽  
Design Methodology ◽  
Research Study ◽  
Longitudinal Research ◽  
Evidence Base ◽  
Content Type ◽  
Educational Provision ◽  
Professional Body ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this paper is to evaluate the impact of an employability module, the College of Policing Certificate in Knowledge of Policing (CKP), on students’ career aspirations, their confidence and wish to join the police along with the appropriateness of the module. This will inform the implementation of employability as part of the College of Policing-managed Police Education Qualifications Framework (PEQF). Design/methodology/approach A three-year longitudinal research study used mixed methods across four points in time to evaluate the impact on students studying the employability module. Findings The research suggests that the employability-focussed CKP was useful as an introduction to policing, it developed interest in the police and enhanced the confidence of learners applying to join. Lessons learnt from the CKP should be considered during the implementation of the PEQF. Research limitations/implications The ability to generalise findings across different groups is limited as other influences may impact on a learner’s confidence and employability. However, the implications for the PEQF curriculum are worthy of consideration. Practical implications As the police service moves towards standardised higher educational provision and evolution of policing as a profession, lessons can be learnt from the CKP with regards to the future employability of graduates. Originality/value Enhancing the employability evidence base, focussing on policing, the research identified aspects which may impact on graduates completing a degree mapped to the PEQF. The research is therefore of value to higher education and the professional body for policing.

Employee emotional displays in the extended service encounter

2019 ◽  
Vol 31 (1) ◽  
pp. 115-136 ◽  
Author(s):  
Magnus Soderlund ◽  
Hanna Berg
Keyword(s):  
Marketing Communications ◽  
Emotional Expressions ◽  
Service Firms ◽  
Still Images ◽  
Content Type ◽  
Emotional Displays ◽  
Service Setting ◽  
Low Levels ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this paper is to examine the impact of happiness expressed by service firm employees when they are depicted in marketing communications materials, such as printed ads and videos. Design/methodology/approach Two experiments were conducted in a fitness service setting, in which employee display of happiness was manipulated (low vs high). Findings Both experiments showed that expressions of high levels of happiness produced a more positive attitude toward the service employee than expressions of low levels of happiness. Moreover, the impact of the expression of happiness on the evaluation of the employee was mediated by several variables, which suggests that the influence of depicted employees’ emotional expressions can take several routes. Practical implications The results imply that service firms should not only be mindful about which specific employee they select for appearing in marketing communications materials, they should also pay attention to the emotional displays of selected employees. Originality/value The present study contributes to previous research by assessing a set of potential mediators to explain why displays of happiness influence consumers, and by examining these effects in a marketing communications setting in which the customer is exposed to still images or video-based representations of the employee. The present study also focuses explicitly on happiness rather than on smiles.

Understanding how the contextual variables influence political behaviour in strategic decision-making

2014 ◽  
Vol 7 (3) ◽  
pp. 226-250 ◽  
Author(s):  
Said Elbanna ◽  
Ioannis C. Thanos ◽  
Vassilis M. Papadakis
Keyword(s):  
Decision Making ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Strategic Decisions ◽  
Empirical Examination ◽  
Content Type ◽  
Political Behaviour ◽  
Practitioner Education ◽  
The Impact ◽  
Practical Implications

Purpose – The purpose of this paper is to enhance the knowledge of the antecedents of political behaviour. Whereas political behaviour in strategic decision-making (SDM) has received sustained interest in the literature, empirical examination of its antecedents has been meagre. Design/methodology/approach – The authors conducted a constructive replication to examine the impact of three layers of context, namely, decision, firm and environment, on political behaviour. In Study 1, Greece, we gathered data on 143 strategic decisions, while in Study 2, Egypt, we collected data on 169 strategic decisions. Findings – The evidence suggests that both decision-specific and firm factors act as antecedents to political behaviour, while environmental factors do not. Practical implications – The findings support enhanced practitioner education regarding political behaviour and provide practitioners with a place from which to start by identifying the factors which might influence the occurrence of political behaviour in SDM. Originality/value – The paper fills important gaps in the existing research on the influence of context on political behaviour and delineates interesting areas for further research.

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